by Travis Johnson, Stock Gumshoe | August 28, 2015 12:01 am
This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.
Source URL: https://www.stockgumshoe.com/2015/08/august-idea-of-the-month-catching-a-falling-fosun/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
Watchu doing up at 1AM like me? 😉
keep up the good work Travis
Thnx T…
In a near-term future article, could give us your take on a few stocks that u might
short before the next collapse (in Sept/Oct?), which will probably be a lot BIGGER.
Also an update on the rewards (and risks) of put options, spreads, butterflies, volatility index, etc.
Thanks for the idea, David — I rarely short, it’s too expensive and rewards the good timer (not me) more than the patient investor. But I’ll think about it — my tendency is to look for opportunity, so expensive markets make me want to hold cash and await bargains with fingers crossed, not necessarily to bet on when expensive markets might become cheap.
I think there is some short term risk but even Buffett and Munger have had 50% down drafts over the course of Berkshire.
Ask today was $13.32 down from a high of $22.00.
Why does this equity put a 500 share minimum to buy?
I haven’t noticed a 500 share minimum, but from what I heard from Interactive Brokers it trades in 200-share increments in HK. It’s down primarily, I think, because The Chinese market cratered this Summer.
The board lot for Fosun Int’l in Hong Kong is listed as 500 shares, which is the readily exchangeable size lot. No doubt brokers can work around this in reasonable increments. Currently lot size is about US$850.
I trade globally through Everbank and that is where the 500 share limit was posted. Do you mean that they can place an order for less if I speak with a broker there instead of online?
Thank you for the idea, Travis. I am considering a small OTC buy as I have no means of buying in Hong Kong. Are you still positive on Lancashire Holdings?
I still own Lancashire, haven’t looked at the details in recent weeks — last I saw volume was low but profitability still good.
Hello Travis – first time responder here – the Fosuf is 1.80 –there’s a Fosuy thats 44.0
are they the same stock and which are you referring to. thanks for info .
FOSUF = 1 share in Hong Kong
FOSUY = 25 shares in Hong Kong
$1.80 is way above the HK price (HK closed around HK$13, a Homk Kong dollar is worth about US$0.13. Apparently some folks got a bit too excited — may well work out in the long term, but with foreign OTC shares like this I think it’s generally better to be patient and wait for your price.
Hi Travis, can you tell me how to buy in Hong Kong, or at least how you do it? thx!
Who cares WHERE the order fills? I give my broker a limit order, when I so wish, and I don’t care where it fills. The trading desk will shop around, so to speak.
And charge an extra $50 commission because a human trader must be involved. Have to pass on this one, but it definitely looks interesting.
Thanks for this Travis. I also think that Fosun’s share price has been affected by the general Chinese market swing and not because of its own fundamentals. It sounds like a good opportunity to initiate a position.